The telecommunications industry provides essential connectivity for our personal and professional needs. The roll-out of 5G and other technology developments will continuously transform how we live and work, especially in a post-COVID world. The marketplace is now more competitive than ever, with consumers easily able to switch brands.

To gain and defend market share, superior consumer insights and marketing advisory are necessary for strategic advantage.

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Case Study: Leading the evolution of mobile phone plans

Our client is a challenger brand in the Australian telecommunications industry. With so many choices available to consumers, getting the right mix of plans and their compositions is critical. Consumers expect mobile phone plans with data and speed allocations that meet their needs at the right price. Yet COVID-19 complicated this picture: some consumers traded down to save money; others did not change; still others uptiered to premium offers. Some of these changes were temporary; others became established.

The client partnered with Forethought to undertake an ongoing program of work to identify exactly what different groups of Australian consumers want from their mobile phone plans and how the client should deliver to these needs.

Forethought’s ongoing program of work comprised discrete projects that individually addressed questions specific to a certain group of consumers:

  • Families. Forethought undertook a quantitative project to assess the best pricing strategy for a new-to-market mobile phone plan for developed especially for Australian families. Leveraging Forethought’s Price Brand methodology, which identifies the price and non-price cues that drive price perceptions, we helped the client determine the most effective way to communicate pricing for this new offer
  • Consumers who exceed their data allowances. Forethought undertook a quantitative project using advanced Choice modeling analytics to determine the optimal number of data add-on ancillary offers the client should take to market, including data amounts for each ancillary offer and its price
  • Existing customers. Forethought undertook a comprehensive qualitative (focus groups) and quantitative project to understand the commercial viability of increasing direct debit payment mechanisms across the broad customer base, allowing the client to understand where to target their initiatives and minimize churn risk
  • Broad market. Forethought undertook a quantitative project using advanced Choice modelling analytics to select the optimal data amount (including unlimited) and speed tiers to construct future mobile phone plan offers

Optimising the client’s mobile phone plan offer is an ongoing process. Some of these individual projects refuted client assumptions leading to the cessation of initiatives that saved the client millions of dollars. Other individual projects have had immediate commercial outcomes of up to 14% incremental revenue.

The client’s partnership with Forethought and overall program continue to evolve and develop in 2021.